For Immediate Release
Michael Briggs (202) 228-6492
Minimum Wage Too Low to Keep Working Families Out of Poverty, New Report Finds
WASHINGTON - The federal minimum wage is leaving millions of families in poverty, according to a new study prepared by the Government Accountability Office for Sen. Bernie Sanders (I-Vt.).
Only 5 percent or less of families with a low-wage worker received TANF cash assistance at least once in the last year between 1995 and 2016.
- In 2016, most single-parent families (82 percent) with a minimum wage earner lived below 200 percent of the federal poverty line.
- In 2016, 37 percent of all families with a minimum wage earner lived below 200 percent of the federal poverty line. Twenty-four percent of all families earning between $12 to $16 per hour lived below 200 percent of the federal poverty line.
- A hypothetical low-wage worker ages 25 to 64:
- earning $7.25 per hour or less would have annual earnings of $12,441 – making them eligible for Medicaid, SNAP, EITC and ACTC
- earning $7.25 to $12 per hour would have annual earnings of $20,592 – making them eligible for Medicaid, SNAP, EITC and ACTC
- earning $12 to $16 per hour would have annual earnings of $30,784 – making them eligible for EITC and ACTC
- The percent of workers earning $12 to $16 per hour with college degrees increased from 16 percent in 1995 to 22 percent in 2016.
Read the report here.
Our pandemic coverage is free to all. As is all of our reporting.
No paywalls. No advertising. No corporate sponsors. Since the coronavirus pandemic broke out, traffic to the Common Dreams website has gone through the roof— at times overwhelming and crashing our servers. Common Dreams is a news outlet for everyone and that’s why we have never made our readers pay for the news and never will. But if you can, please support our essential reporting today. Without Your Support We Won't Exist.
Please select a donation method:
United States Senator for Vermont